In re Interrogatories case brief

In re Interrogatories case brief
Citation:  193 Colo. 298

Colorado Housing Finance Authority Act - issued bonds to provide finds for the achievement of low-income housing goals.
The bill was designed in order to create a reserve fund.
With the fund, the bonds were to be sold in the national bond market.
The senate questioned the court: "whether the bill violated sections of the Colorado state constitution?"

Court says: No

Court ruled that the authority, as a political subdivision of the state, has the power to incur obligations in its own name.  Its obligations thus did not constitute a constitutional debt of the state.

Also, the appropriation did not constitute a debt because it was discretionary and nonobligatory.

NOT A PLEDGE
Furthermore, the appropriation did not constitute a pledge of the state's credit. 
-This is because no debt was created and there was no lending of credit.

DID NOT MINGLE PUBLIC AND PRIVATE FUNDS.
FURTHERED A VALID PUBLIC PURPOSE.

The Housing Authority has a reserve fund.
If the reserve fund needs replenished - go to the legislature.
The legislature may appropriate the funds to pay and the governor may approve.

Issue:  Whether the state is on the hook for this debt - is it government debt?

Holding:  No, it is not government debt because there is no legal obligation. 

Analysis:

-The government may replenish the reserve.
-The state is not required to pay you if the revenue backing is not sufficient. 
-Not a legally enforceable promise.